All Forum Posts by: Keyano Burgess

In my opinion joining a coaching program is a complete waste of time. You pay thousands of dollars for this that and the other thing and at the end of the day it may amount to nothing. Finding a high-quality real estate agent who knows how to negotiate, has access to off market deals, and has a network ready for you to use is exponentially better.

Hi Michael,

You have pretty much all of your bases covered! As an investor-focused agent in the Cleveland market I always have my clients write the following contingencies in when buying a house that's tenant occupied:

1) Offer contingent on home inspection- usually a 7-10 day contingency period, this contingency allows you to either A) move forward with the deal B) renegotiate the price if issues are found, or C) walk away from the deal

2) Offer contingent on appraisal if you're going financing

3) Seller to provide copy of current lease agreement

4) Seller to provide a rent roll/tenant ledger with proof of payments received

5) Seller to provide copies of 3 previous months of any utilities paid by the landlord

6) Seller and tenants to fill out Estoppel Certificate. An estoppel certificate is a form you have the tenant sign that confirms their lease start date, the amount of their security deposit, and other things. It is a very good idea to get signed so everyone is on the same page.

Good luck with your investment endevears and feel free to dm me if you have any questions!

Hi Shayan,

If it were me I would make an offer contingent on contractor walkthrough right at the asking price. That way you're not locked into the deal without getting an estimate and if the rehab budget comes in higher than $65k you can easily walk away- make sure the assignment says EMD is refundable if you do decide to walk.

The 70% rule is a great rule of thumb. The lower under 70% the better obviously, but 70% is a good number where even if it does go up to 75% you have that wiggle room built-in there!

65%, 70%, 75% whatever it is the most important thing is getting a solid estimate from your contractor and holding him to it!

I hope this helps, feel free to send me a dm if you have any other questions.

Hi Tim,

I am a realtor in the Cleveland market and anytime one of my listings doesn't sell I recommend a $5,000 price reduction every 2 weeks until the property sells.

In your case, you might want to reduce it a little bit more because you want to sell before winter. 

I would also have your realtor list the house on Facebook marketplace. I was in a similar situation where I advised my buyer to list at 249 but he insisted on listing at 299. 4 months later we found a buyer after I had posted the listing on marketplace. 

We ended up closing at 240, but I believe we could have easily gotten 260 if we had listed at 249 and created a bidding war.

I hope this helps! In the future I strongly suggest a similar pricing strategy where you list lower than what the comps come in at. This creates a lot of buzz around the property and has everyone and their grandmothers talking about it!

Hi Dirk,

I would be happy to connect and hep you build your team here in Cleveland. As realtor/investor who specializes in working with investors, I can be your one-stop shop here connecting you with home inspectors, general contractors, and property managers all of whom I know and trust. I will send you a DM, I'm looking forward to connecting.

Hi Matthew,

I am a realtor here in the Cleveland market and help a lot of my clients with the BRRR model. From getting you connected to contractors, coordinating inspections, and helping you find the right property management company I'm your one stop shop. Please send me a DM if you would like to get on a all and talk more.

Hi Akshay,

As a real estate agent and investor here in the Cleveland market I can confidently say that there are plenty of BRRR opportunities in Cleveland. You are correct to assume Cleveland by and large is a cash flow market, but like any cities this is going to vary from neighborhood to neighborhood. We have very strong appreciation areas in the Cleveland market such as Lakewood which appreciates 7% a year on average. And yes the Cleveland Clinic has a strong presence here and presents many opportunities for employment and thus rentals. Send me a DM if you would like to hear more, I am more than happy to get on a call with you and answer any questions you might have.

Hi Robert,

I like to utilize the 70% rule when calculating how much to spend on a project. For example, lets say our property has an ARV of $100,000. Multiply 70% (.07) by $100,000 and you are left with $70,000. That means you can spend up to $70,000 on the purchase price and renovations and it would still be considered a good deal, according to the 70% rule.

I always like to stay under around 60-65% rule, as some unforeseen expense always seems to pop up once you start tearing down walls. I make these calculations upfront and make sure my general contractor can stay within my budget before going into a deal. 

I hope this helps and please feel free to send me a DM if you have any questions. As a licensed realtor and investor here in the Cleveland market, I have plenty of experience working these deals and always eager to help others on their real estate journey.

Hi Bobby,

I would be happy to share my contacts with you. I have a few for you to choose from including one I have done over 10 deals with, one that is a direct wholesale supplier, and another that works for a property management company. Feel free to shoot me a DM if you would like to connect.

Thank you,

Keyano

Hi Deena,

Yes, you can use a bridge loan to cover both the purchase cost and renovations. I work with many investors here in the Cleveland market who regularly use bridge loans upfront, then cash out on a DSCR loan.

Feel free to shoot me a DM if you would like to connect, I am always eager to help newer investors build their portfolio.